CTS Corporation

Good day and welcome to the CTS Corporation second quarter 2020 earnings call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Kieran O'Sullivan. Please go ahead, sir.

Thank you. Good morning. Thank you for joining us today and welcome to CTS's second quarter 2020 conference call. I'll begin by sharing a few thoughts on our company and our business performance. As we mentioned on our last earnings call, we expected the second quarter to be our most challenging quarter this year due to the impact of COVID-19. Operationally, all of our plants are running, though we continue to experience challenges at our Mexico locations. The return to the appropriate production staffing levels has been impacted by state and local regulations. Our leadership and global teams are prioritizing the safety of our employees, and adapting quickly to serve our customers' needs. Sales were 84 million, down 30% from the second quarter of 2019. As expected, we saw significant challenges in the transportation and market. Sales in the rest of our business were stable. Second quarter gross margins were 31.6% compared to 34.1% in the same period in 2019. We delivered an adjusted EBITDA margin of 16.7% despite a 30% drop in sales. Second quarter adjusted earnings per share were 16 cents. We had a promising new sensor win in transportation for application in hybrid electric vehicles and continue to make progress with RF product wins in defense. We added 13 new customers in the quarter. We ended the quarter with 146 million in cash and $141 million in debt. We expect a prolonged recovery from the COVID-19 impact. As a result, we are implementing a restructuring plan to realign our cost structure to the new demand environment. This plan will be completed over the next 24 months. Ashish Agrawal, our CFO, is with me for today's call and will take us through the safe harbor statement.

Ashish? I would like to remind our listeners that this conference call contains forward-looking statements. These statements are subject to several risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in the press release issued today, and more information can be found in the company's SEC filings. to the extent that today's discussion refers to any non-GAAP measures under Regulation G. The required explanations and reconciliations are available in the investor section of the CTS website. I will now turn the discussion back over to our CEO, Karen O'Sullivan.